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Transformation of Work Triggers U.S. Shift to Workday

Many U.S. companies are leaving traditional ERP for cloud-based Workday, seeking scalability and flexibility to manage distributed workforces, ISG Provider Lens™ report says

More enterprises in the U.S. are migrating human capital management (HCM) functions from on-premises ERP systems to the cloud-based Workday platform as user experience and convenience become more important with new modes of working, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Workday Ecosystem report for the U.S. finds that, as more employees began working remotely during the COVID-19 pandemic, face-to-face interactions declined and workers relied more on software for common HCM functions such as payroll and talent management. This has helped accelerate a shift from traditional ERP platforms to Workday, which unifies enterprise data and processes in the cloud, making them easier to use in any location and on any device.

“Global events and technological advances have changed the way companies look at HCM,” said Stacey Cadigan, partner, ISG Human Capital Management. “For many of them, Workday offers a flexible and scalable approach with a strong user experience.”

Amid rapidly changing market requirements and regulations, new cost constraints and a shortage of skilled IT workers, U.S. companies are turning to platforms such as Workday to become more competitive, ISG says. In legacy ERP suites, HCM functions reside in independent modules that typically require in-house computing resources and IT teams. This siloed approach makes data management and process transformation difficult. Workday not only provides a more modern user experience but allows for easier adaptation to changing needs, the report says.

Workday migration is occurring worldwide but happening fastest in the U.S., where enterprises are more open to new technologies in general, ISG says. The country’s huge retail and financial services sectors, for example, have been particularly aggressive in adopting cloud-based software-as-a-service (SaaS) platforms such as Workday. Enterprises in Europe, especially in resource-intensive industries such as automotive, have been more cautious.

“Workday is gaining traction across all business segments in the U.S., plus some schools and federal agencies,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “As these organizations digitally transform, they are integrating Workday with other cloud-native applications.”

The report also examines other trends in the Workday ecosystem in the U.S., including the rapid growth of managed services around Workday and the slower adoption, so far, of consulting services for the platform.

For more insights, including the major HCM challenges U.S. enterprises face and advice on how and when to begin preparing for HCM modernization, see the ISG Provider Lens™ Focal Points briefing here.

The 2022 ISG Provider Lens™ Workday Ecosystem report for the U.S. evaluates the capabilities of 21 providers across three quadrants: Consulting and Strategy Services, Implementation and Integration Services and Managed Services.

The report names Accenture, Alight, Collaborative Solutions, Deloitte and PwC as Leaders in all three quadrants. It names Hexaware, KPMG and OneSource Virtual as Leaders in two quadrants and Huron as a Leader in one quadrant.

In addition, Huron is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Invisors is named as a Rising Star in one quadrant.

Customized versions of the report are available from Collaborative Solutions, Hexaware and OneSource Virtual.

The 2022 ISG Provider Lens™ Workday Ecosystem report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit


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